In order to increase foreign capital investment and to be prepared for ASEAN Economic Community (AEC), Indonesian Government has renew the provision of List of Negative Investment in closed and opened industry for foreign capital investment.
The new provision was written in President Regulation No. 39 in 2014 about list of closed and open industry for foreign capital investment which has been signes by President of Indonesia in that time, Mr. Susilo Bambang Yudhoyono in April 23rd, 2014. The new regulation has been the exchange of the last regulation, President Regulation No. 36 in 2010.
President Regulation have divided into three fields which are:
A. Closed field = Not allowed to have any business field, including failure in investation
B. Open field with requirements, Business fields that are allocated for middle low class, cooperative and fields that have partnership requirements with the shareholders, special locations and special licenses.
C. Open field = foreign capital investment without special requirements.Below are the List of Negative Investment in industry sector and industrial zone:
- Maintenance and Repairs of Cars with maximum Foreign Capital Ownership is 49 percent.
- Cigarette industry is obliged to obtain a recommendation from the Ministry of Industry regarding: Cigarette industry which has owned industrial business license and has made expansion and Small and medium cigarette industry having partnership with big cigarette industry which has owned industrial business license in the same type of business field.
- Pulp industry on condition that raw materials are from Industrial Forest (Hutan Taman Industri/ HTI) or come from Imported Chips if domestic raw materials are inadequate.
- Commercial Paper Industry such as Bank Notes Paper, Cheque Paper, Watermark Paper on condition that it is must obtain operational license from Counterfeit Money Eradiction Coordination Agency/ National Intelligence Agency (Badan Koordinasi Pemberantasan Uang Palsu/ BOTASU PAL/ BIN) and must obtain a recommendation from the Ministry of Industry.
- Special Printing/ Securities Documents Industry such as, postage stamp, stamp duty, securities, passport, population document and hologram on condition that it must obtain operational license from BOTASU PAL/ BIN and must obtain recommendation from Ministry of Industry.
- Currency Printing Industry (Industri Percetakan Uang) on conditio that it must obtain operational license from BOTASU PAL/ BIN and must obtain recommendation from Ministry of Industry.
- Lead Smelting Industry on condition that it must obtain a recommendation from State Ministry for Environment and Ministry of Industry for industried using used batteries as raw materials.
- Granular Sugar Industry (white crystal sugar, refined crystal sugar and raw crystal sugar) on condition that maximum foreign capital ownership is 95 percent. In addition, the establishment of new granular sugar plant or expansion must first establis private-owned sugar cane plantation in accordance with the provisions of law and regulations. Establishment of new sugar plant under capacity over 8,000 ton cane per day is obliged to produce raw crystal sugar.
HOW CAN SMART LEGAL CONSULTING HELP YOU?
SMART Legal Consulting has extensive experience in helping to grow a company and establish the company. If you need immediate assistance, please contact the SMART Help Desk at: